KUALA LUMPUR (April 29): Far East Holdings Bhd is proposing to acquire 2,134 hectares of oil palm plantation land in Rompin, Pahang, and a palm oil mill from Harn Len Corp Bhd for RM182.99 million cash.
In a filing with Bursa Malaysia, Far East said it will fund the acquisition through internally-generated funds.
The group said the palm oil mill has a capacity of 40 tonnes of fresh fruit bunches per hour.
Far East said the proposed acquisition is in line with its expansion plan and would broaden the group’s income base, through increased plantation acreage at a ‘reasonable’ cost and at a strategic location.
“The proposed acquisition demonstrates the board’s initiative in pursuing continued growth and sustainability of the business. The board firmly believes that the proposed acquisition will expand the group’s development activities and is expected to contribute positively to Far East’s future prospects and earnings,” it said.
Far East said the acquisition is expected to be completed by the second half of this year.
The group’s share price closed unchanged at RM2.79 today, giving it a market capitalisation of RM1.66 billion.